Construction of New Wind Turbines in UK

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UK: Investor and Zac Goldsmith warn of damage from renewables support cuts

Prospective Mayor of London Zac Goldsmith has criticised the government for its decision to cut some of the green sector’s key support schemes. He told Business Green government should “accelerate not reduce incentives” for clean technology.

A group comprising thirteen investors has warned that the UK is damaging its prospects for renewables energy investment because of harsh subsidy cuts in a letter to the chancellor, George Osborne.

In fact, potential investors in onshore wind investors are already hesitant to support projects in the UK, a survey by EY has found, following the curtailing of the Renewables Obligation and ahead of the Energy Bill going through parliament.

An impact assessment of the early closure of the RO reveals this will mean an additional 63 million tonnes more CO2 as well as only saving 30p on the average annual household bill.

Meanwhile The Telegraph points out that the cuts in total add up to a saving of about £6 per household in a data story looking at the massive reductions in support for renewables, which also highlights families are £7,850 better off by installing rooftop panels now than they would be under next year’s proposed rates.

Manufacturing group, EEF, has urged the government to scrap the carbon price floor and other green taxes entirely - and replace them with tax incentives to reduce CO2.

Oil price: Oversupply and volatility set to continue

The US rig count has tumbled for the second week in a row, and the IEA said on Friday that it sees US oil output collapsing next year on low prices.

For the rest of this year, OPEC now thinks oil will stay below $50 per barrel, while Goldman Sachs has been warning of the potential for a price as low as $20 on Iran sanctions being lifted.

Analysts IHS have said the key drivers of oil price volatility – apart from Iran – are Chinese economic growth, US crude production and exports, shipping rates and global oil refining industry development.

In other news

Shell sustainability: Shell leaves Prince of Wales climate change group amid concerns, reports the FT.

China coal: China’s August coal output down 2.6%, according to China’s official statistics bureau.

CCS: BHP Billiton and Canadian electricity provider SaskPower have signed a MoU to accelerate the global development of CCS, including establishing a centre to support research and cut the costs and risks facing global CCS projects.

Africa renewables blueprint: South Africa pushes to expand renewable energy, reports WSJ.

Divestment: University of California has sold of over $200m in assets linked to coal and oil sands companies.

Climate change: If we burn all the fossil fuels we will melt almost all of Antarctica, leading to 160-200 ft sea level rise, say scientists.

Paris COP: EU ministers are scrambling to find a climate finance consensus, reports Politico, amid the World Bank saying it’s confident funding to back a climate deal will be secured.